BUS 374 Lecture Notes - Lecture 8: Nordstrom, Single Market, Supreme Headquarters Allied Powers Europe

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 374
• Professor: Rajiv Kozhikode

Document Summary

Lecture #8: how to organizations interact, truck case, organizations form inter-organizational relationships. How do organizations interact with each other: organizations may form alliances that are mutually beneficial, a strategic alliance may be a positive influence on the organization. Inter-organizational trust is a key factor related to alliance success: trust is a trade-off. By placing your trust on your alliance partner, you are giving up something. For e. g. one organization may offer to provide services for payment at a later date, or they may offer good for a lower price to a trusted partner. This helps them gain more mutual trust, but this is also a cost to the organization in terms of they may give up profits or competitiveness: but trust is considered pretty awesome for alliances. These factors may also affect how trust is related: while the benefits of trust bring down uncertainty in partner behavior, it also lulls the organization into a sense of comfort.